THE gem and jewellery industry has sought reduction in customs duty on gold to four per cent, withdrawal of tax collected at source (TCS), cut in Import Duty on polished precious and semi-precious gemstones, in the upcoming Union Budget. All India Gem and Jewellery Domestic Council (GJC) Chairman Ashish Pethe said, “We urge the Government to reduce the customs duty to 4 per cent from the current 12.5 per cent.

 

If the tax rate is not kept at this level, it will encourage smuggling and encourage people to do unorganised business.” He urged Govt to keep goods falling under HSN-71 (Harmonised System Nomenclature) out of purview of TCS provisions as the amount of funds blocked in TCS is 6.67 times more than ability to pay I-T, resulting in blockage of funds.